McMann Company has a condensed income statement as shown::
$\begin{array}{|l|l|l|}
\hline & \mathbf{2 0 1 4} & \mathbf{2 0 1 3} \
\hline \text { Sales } & \$ 198,000 & \$ 165,500 \
\hline \text { Total operating expenses } & 163,000 & 147,500 \
\hline \text { Net income } & 35,000 & 18,000 \
\hline
\end{array}$
Using horizontal analysis,calculate the amount and percent change for Sales.Round to one decimal place.
A)$32,500,19.6%
B)$18,000,10.9%
C)$35,000,17.7%
D)$17,000,9.4%

Question

Quizplus · Accepted Answer

Horizontal analysis shows the amount and percentage change in each financial statement line item from one period to the next. For sales, the amount of change is $198,000 - $165,500 = $32,500. The percentage change is $32,500 / $165,500 = 19.6%.

McMann Company Has a Condensed Income Statement as Shown Using Horizontal Analysis,calculate the Amount and Percent Change for Sales